How I earned over 100% returns in one trade

During the Covid-19 crash, restaurant stocks were hit the hardest. They were shut down for months. No one expected them to perform well at all. One of the stocks that was hit the hardest was The Cheesecake Factory, which was down over 50% in the weeks after the Covid-19 crisis.

Logically, the right thing to do was buy the stock. After all, you're supposed to "buy low, sell high." Right?

Just one issue.

Nobody had the courage to invest in restaurants in the middle of a pandemic.

The reason nobody had the courage to buy restraunts is because they veiwed the pandemic as a total catastrophe. They said, "this pandemic is a total disaster to The Chessecake Factory's business. Even though it's trading at a cheap price, it's still not worth investing in."

But I took a different approach.

I didn't view the pandemic as a total catastrophe to the Cheesecake Factory's business. Rather, I viewed it as a tiny blip in the grande scheme of things.

That gave me the courage to buy a stock that people viewed as untouchable.

And it turned out extraordinarily well. The stock doubled and outperformed the S&P 500 by over 100%, making it one of my best trades. People struggle to get 1% outperformance. But here I was outperforming the market by over 100% in one trade.

All that success came from viewing the Covid-19 "as a tiny blip in the grand scheme of things" rather than as a "total catastrophe."